Spot aluminum prices rose, while spot aluminum trading sentiment weakened somewhat [SMM Aluminum Spot Market Midday Review]

SMM December 1:

The SHFE aluminum December contract mainly traded with volatility in the morning session, but its trading center rose significantly compared to the previous trading day. In east China, holders maintained active selling, but still showed some intention to hold prices firm, with offers ranging from a discount of 10 yuan/mt to around the SMM average price. As the absolute price strengthened, downstream purchasing intention showed expanded discounts, with offers ranging from a discount of 20 yuan/mt to a discount of 10 yuan/mt against the SMM average price. Overall, the actual transaction price today was at a discount of about 10 yuan/mt against the SMM average price. Today, the east China market selling sentiment index was 2.83, down 0.02 WoW; the purchasing sentiment index was 2.70, down 0.05 WoW. SMM A00 aluminum was quoted at 21,730 yuan/mt, up 280 yuan/mt from the previous trading day, at a discount of 50 yuan/mt against the December contract, down 10 yuan/mt from the previous trading day.

Aluminum prices experienced a significant correction today. In the central China market, purchasing willingness was low, with a tendency to purchase at large discounts. After the market opened, prices continued to rise, holders showed strong wait-and-see sentiment, offers gradually increased, but market transactions remained predominantly sluggish. After 9:30 AM, major players entered the market for large-scale purchases, spot inventory in the market decreased, and offers showed a premium trend. Ultimately, the actual transaction prices mainly ranged from a discount of 20 yuan to a premium of 10 yuan against the central China price. Today, the central China market selling sentiment index was 2.96, up 0.02 WoW; the purchasing sentiment index was 2.81, down 0.01 WoW. SMM central China closed at 21,600 yuan/mt, up 270 yuan/mt from the previous trading day, at a discount of 180 yuan/mt against the December contract, down 20 yuan/mt from the previous trading day. The Henan-Shanghai price spread was -130 yuan/mt, down 10 yuan/mt from the previous trading day.

Inventory side, national aluminum ingot inventory totaled 596,000 mt on Monday, flat WoW.As the off-season gradually deepens, the casting ingot rate increases, and demand marginally weakens; coupled with holders actively selling for year-end fund returns, spot premiums and discounts are expected to be under pressure in the short term.